FINAL REPORT Evaluation of Seawater Desalination Projects ...

EVALUATION OF SEAWATER DESALINATION PROJECTS
PROPOSED FOR THE MONTEREY PENINSULA
Additional on-shore storage may be needed to provide adequate disinfection contact times.
Proponents have supplied bid prices or bid estimates for some major components, which
would be expected to be of good quality for these purposes. The capital cost for the ship is
assumed amortized over 30 years, which may be unrealistic for the specified 25-year-old
ship 47 . Maintenance cost estimates appear low for the operation in the marine environment.
The annual volume reported for this proposal assumes the plant is run at full capacity yearround.
This is unlikely unless regulating storage or a supplemental supply is provided to
allow the project to meet peak demands. This storage or supply is not identified, so the yield
may be reduced, additional costs may be required, or both.
No fatal flaws were identified; however, contingencies for legal, engineering, environmental,
and permit activities were not included in the cost estimate. It is recommended that a
minimum contingency of 25 percent be used for all project components, and that overhead
costs of at least 24 percent (consistent with other projects) be added.
47 Proponent’s comments on the GEI/B-E draft report state they will not be purchasing a 25-year-old ship.
Ships used in proponent’s cost estimate were 26 and 31 years old.
Monterey Peninsula Water Management District 5-19